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All agreements are not studied under the Indian Contract Act, 1872, as some of those are not
contracts. Only those agreements, which are enforceable by law, are contracts. The term
‘agreement’ given in Section 2(e) of the Act is defined as "every promise and every set of
promises, forming the consideration for each other". An agreement to become a contract must
give rise to a legal obligation which means a duty enforceable by law.
Example - A agrees with B to sell car for Rs. 2 lacs to B. Here A is under an obligation to give car
to B and B has the right to receive the car on payment of Rs. 2 lacs and also B is under an
obligation to pay Rs. 2 lacs to A and A has a right to receive Rs. 2 lacs.
➢ Capacity of Parties:
The parties to a contract must have capacity (legal ability) to make valid contract. In every case
of contract there must be assent of the parties. If, therefore, either of the parties to an agreement
is deprived of the use of his understanding or if he be deemed by law not to have attained it,
there can be no such agreement which shall bind him. Section 11 of the Indian Contract Act
specifies that every person is competent to contract provided,
(a) is of the age of majority according to the law to which he is subject, and
(b) who is of sound mind, and
(c) is not disqualified from contracting by any law to which he is subject.
In other words (a) a minor, (b) a person of unsound mind (a person of unsound mind can enter
into a contract during his lucid intervals) and (c) a person disqualified from contracting by any law
to which he is subject, e.g. an alien enemy, foreign sovereigns and accredited representatives
of a foreign state, insolvents and convicts, are not competent to contract.
In India, the age of majority is regulated by the Indian Majority Act (Act IX of 1875). Every
person domiciled in India attains majority on the completion of 18 years of age.
❖ Discharge of Contract:
❖ Breach of Contract:
Breach means failure of a party to perform his or her obligation under a contract.
(ii) Suit upon Quantum Meruit: The phrase ‘quantum meruit’ literally means “as much as is
earned” or “according to the quantity of work done”. When a person has begun the work
and before he could complete it, the other party terminates the contract or does
something which make it impossible for the other party to complete the contract, he can
claim for the work done under the contract. He may also recover the value of the work
done where the further performance of the contract becomes impossible.
(iii) Suit for specific performance: Where damages are not an adequate remedy in the case of
breach of contract, the court may in its discretion on a suit for specific performance direct
party in breach, to carry out his promise according to the terms of the contract.
(iv) Suit for injunction: Where a party to a contract is negativating the terms of a contract, the
court may by issuing an ‘injunction order’ restrain him from doing what he promised not
to do. Example: X, a film star, agreed to act exclusively for a particular producer, for one
year. During the year she contracted to act for some other producer. Held, she could be
restrained by an injunction.
❖ Quasi-Contract:
In the case of every contract, the promisor voluntarily undertakes an obligation in favour of
the promisee. A similar obligation may be imposed by law upon a person for the benefit of
another even in the absence of a contract. In certain circumstances the law presumes the
existence of contract even though no agreement was made between the parties. Such cases
are known as quasi contracts. A quasi or constructive contract rests upon the maxims, “No man
must grow rich out of another persons loss”
INSTANCES OF QUASI-CONTRACTS
Claim for necessaries If necessaries are supplied to a person who is incapable of
supplied to persons contracting, e.g. minor or a person of unsound mind, the supplier is
incapable of entitled to claim their price from the property of such a person.
contracting
Right to recover A person who has paid a sum of money which another is obliged to
money paid for pay, is entitled to be reimbursed by that other person provided the
another person payment has been made by him to protect his own interest.
Obligation of a Where a person lawfully does anything for another person, or delivers
person enjoying anything to him not intending to do so gratuitously and such other
benefits of non- person enjoys the benefit thereof, the latter is bound to make
gratuitous act compensation to the former in respect of, or to restore, the thing so
done or delivered
Responsibility of a A person who finds goods belonging to another and takes them into
finder of goods his custody is subject to the same responsibility as a bailee. He is,
therefore, required to take proper care of things found, not to
appropriate it to his own use and, when the owner is traced, to
restore it to the owner.
❖ Contract of Guarantee:
A contract of guarantee is defined as “a contract to perform the promise, or discharge the
liability, of a third person in case of his default”. The person who gives the guarantee is called
‘surety’; the person for whom the guarantee is given is called the ‘principal debtor’, and the
person to whom the guarantee is given is called the ‘creditor’.
In a contract of guarantee there are three parties, viz., the creditor, the principal debtor and
the surety.
Creditor: The creditor is entitled to demand payment from the surety as soon as the principal
debtor refuses to pay or makes default in payment. The creditor should not change any terms
of the original contract without seeking the consent of the surety. The creditor is under an
obligation not to release or discharge the principal debtor. The surety is discharged by a
contract between the creditor and principal debtor, by which the principal debtor is released.
Surety: The liability of a surety is called as secondary or contingent, as his liability arises only
on default by the principal debtor. The surety has a right to recover from the principal debtor
the amounts which he has rightfully paid under the contract of guarantee. Where a surety has
❖ Contract of indemnity:
It is a contract whereby one party promises to save the other from loss caused to him (the
promisee) by the conduct of the promisor himself or by the conduct of any other person. A
contract of insurance is a glaring example of such type of contracts. These are two parties
involved - indemnifier and indemnified. The indemnifier promises to make good the loss of the
indemnified (i.e., the promisee).
The bailee is under an obligation to re-deliver the goods, in their original or altered form, as
soon as the time of use for, or condition on which they were bailed, has elapsed or been
performed.
• Bailer: The bailer is bound to disclose to the bailee faults in the goods bailed, of which the
bailer is aware and which materially interfere with the use of them or expose the bailee to
extraordinary risks.
• Bailee: In all cases of bailment, the bailee is bound to take as much care of the goods bailed
to him as a man of ordinary prudence would, under similar circumstances, take of his own
goods of the same bulk, quality and value as the goods bailed. In the absence of any contract
to the contrary, the bailee is bound to deliver to the bailer, or according to his directions,
any increase or profit which may have accrued from the goods bailed. An important right
of bailee is the right of lien. Lien is a right in one person to retain that which is in his
possession, belonging to another, until some debt or claim is paid. Since, lien is available
only until the debt or claim is satisfied, once the debt is satisfied or obligation discharged,
the right of lien is extinguished.
• Gratuitous Bailment: It refers to bailment without reward. In case of gratuitous bailment,
the bailer can demand their return whenever he pleases, even though he lent it for a
➢ Agency by Estoppel: When a person has, by his conduct or statements, induced others to
believe that a certain person is his agent, he is estopped from subsequently denying it. The
➢ Agency by Holding Out: Though part of the law of estoppel, some affirmative conduct by
the principal is necessary in creation of agency by holding out. Example: Puran allows his
servant Amar to buy goods for him on credit from Komal and pay for them regularly. On
one occasion, Puran pays his servant in cash to purchase the goods. The servant purchases
good on credit pocketing the money. Komal can recover the price from Puran since through
previous dealings Puran has held out his servant Amar as his agent.
➢ Agency by Ratification: Where agent does an act for his principal but without knowledge
of authority, or where he exceeds the given authority, the principal is not held bound by
the transaction. However, principal, if he so desires can ratify the act of the agent. To be
valid, ratification must fulfill certain conditions:
• The principal must have been in existence at the time the agent originally acted.
• The principal must not only be in existence but must also have contractual capacity at
the time of the contract as well as at the time of ratification.
• Ratification must be made within a reasonable time.
• The act to be ratified must be a lawful one.
• The principal should have full knowledge of the facts.
• Ratification must be of the contract as a whole.
➢ Agency Coupled with Interest: Agency is said to be coupled with interest when authority is
given for the purpose of securing some benefit to the agent. It should be noted that, it is
not the ordinary type of interest which every agent has such as the remuneration, but it is
that special type of interest which agent possesses that makes it agency coupled with
interest. Example - Agent is appointed to sell properties of the principal and to pay himself
out of such sale proceeds the debt due to the agent. The authority of the agent is agency
coupled with interest.
• Sub-agent: A sub-agent is a person employed by and acting under the control of the original
agent in the business of agency. Since the sub-agent is appointed by the act and under the
control of the agent, there is no privity of contract between the subagent and the principal.
• Substituted Agent - Where agent appoints or names another person for being appointed
as agent in his place, such person is called a substituted agent. Example - Amar directs
Bharat, his solicitor, to sell his estate by auction and to employ an auctioneer for the
purpose. Bharat names Cooper, an auctioneer, to conduct the sale. Cooper is not a sub-
agent, but is Amar’s agent for the conduct of the sale.
• Undisclosed Principal: Where agent, though discloses the fact that he is agent working for
some principal, conceals the name of the principal, such a principal is called an undisclosed
principal. The liability of an undisclosed principal is similar to that of a disclosed principal
unless there is a trade custom making the agent liable.
• Concealed Principal: Where agent conceals not only the name of the principal but the very
fact that there is a principal, the principal is called a concealed principal. In such a case, the
third parties are not aware of the existence of the principal and regard the agent as the
person contracting for himself. The third parties, thus, must look to the agent for payment
or performance and the agent may sue or be sued on the contract.
• Liability of Agent: Agent is only a connecting link between the principal and third parties.
Being only a medium, he can, in the absence of a contract to the contrary, neither
personally enforces contracts entered into by him on behalf of his principal, nor is he
personally bound by them. However, agent is personally liable in certain cases. Where
agent acts either without any authority or exceeds his authority, he is deemed to have
committed breach of warranty of authority in such a case. He will be held personally liable
if his acts are not ratifi ed by the alleged principal.
• Sale and Agreement to Sell - In the Sale of Goods, the property is transferred from seller to
the buyer immediately. The term Sale is defined in the Section 4(3) of the Sale of Goods
Act, 1930 as – “where under a contract of sale the property in the goods is transferred from
the seller to the buyer, the contract is called a sale.” In an agreement to sell the ownership
of the goods is not transferred immediately. It is intending to transfer at a future date upon
the completion of certain conditions thereon. The term is defined in Section 4(3) of the Sale
of Goods Act, 1930, which is as follows – "where under a contract of sale the transfer of the
property in the goods is to take place at a future time or subject to some condition
• Subject matter of contract of sale - The subject matter of contract of sale is always the goods.
The goods may be existing or future goods. Existing goods are such goods as are in existence
at the time of the contract of sale, i.e., those owned or possessed by the seller. Future goods
means goods to be manufactured or produced or acquired by the seller after making the
contract of sale.
• Doctrine of Caveat Emptor: In case of sale of goods, the doctrine ‘Caveat Emptor’ means ‘let
the buyer beware’. When sellers display their goods in the open market, it is for the buyers
to make a proper selection or choice of the goods. If the goods turn out to be defective he
cannot hold the seller liable. The seller is in no way responsible for the bad selection of the
buyer. The rule of Caveat Emptor is laid down in the Section 16 of sale of goods act, which
states that, “subject to the provisions of this Act or of any other law for the time being in
force, there is no implied warranty or condition as to the quality or fitness for any particular
purpose of goods supplied under a contract of sale”.
➢ Unpaid Seller:
➢ Rights of unpaid seller: An unpaid seller has been expressly given the rights against the
goods as well as the buyer personally.
RESALE
➢ Rights against goods: He has a right of lien on the goods for the price while he is in
possession, until the payment or tender of the price of such goods. When the unpaid seller
has parted with the goods to a carrier and the buyer has become insolvent, he can exercise
➢ Rights against buyer: The rights of the seller against the buyer personally are called rights
in personam and are in addition to his rights against the goods. Where property has passed
to the buyer and he wrongfully neglects or refuses to pay for the goods, the seller may sue
him for the price of the goods. Where the buyer wrongfully neglects or refuses to accept
and pay for the goods, the seller may sue him for damages for non- acceptance. Where
there is specific agreement between the seller and the buyer as to interest on the price of
the goods from the date on which payment becomes due, the seller may recover interest
from the buyer.
➢ Rights of buyer against seller: If the seller commits a breach of contract, the buyer gets the
following rights against the seller:
• Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer
may sue the seller for damages for non-delivery.
• Where the seller commits of breach of the contract of sale, the buyer can appeal to the
court for specific performance.
• The buyer may treat the contract as subsisting and wait for the date of delivery or he may
treat the contract as repudiated and sue for damages for breach.
• The buyer is entitled to recover interest or special damages to recover the money paid
where in consideration for the payment of it has failed.
Example: X, who is the holder of a negotiable instrument writes on the back thereof : “pay to
Y or order” and signs the instrument. In such a case, X is deemed to have en- dorsed the
instrument to Y. If X delivers the instrument to Y, X ceases to be the holder and Y becomes the
holder.
➢ Discharge by allowing drawee more than forty-eight hours to accept: If the holder of a bill
of exchange allows the drawee more than forty eight hours, exclusive of public holidays, to
consider whether he will accept the same, all previous parties not consenting to such
allowance are thereby discharged from liability to such holder.
➢ Discharge in case of Cheque: Where a cheque is not presented for payment within a
reasonable time of its issue, and the drawer or person on whose account it is drawn had the
right, at the time when presentment ought to have been made, as between himself and the
banker, to have the cheque paid and suffers actual damage through the delay, he is
discharged to the extent of such damage. The holder of the cheques as to which such drawer
or person is so discharged shall be a creditor, in lieu of such drawer or person, of such banker
to the extent of such discharge and entitled to recover the amount from him.
➢ Where a cheque payable to order purports to be indorsed by or on behalf of the payee, the
drawee is discharged by payment in due course. Where a cheque is originally expressed to
be payable to bearer, the drawee is discharged by payment in due course to the bearer
thereof, notwithstanding any indorsement whether in full or in blank appearing thereon, and
Applicability of Companies Act, 2013 – The provisions of the Act shall apply to-
• Companies incorporated under this Act or under any previous company law.
• Insurance companies (except where the provisions of the said Act are inconsistent with
the provisions of the Insurance Act, 1938 or the IRDA Act, 1999)
• Banking companies (except where the provisions of the said Act are inconsistent with
the provisions of the Banking Regulation Act, 1949)
• Companies engaged in the generation or supply of electricity (except where the
provisions of the above Act are inconsistent with the provisions of the Electricity Act,
Section 2(20) of the Companies Act, 2013 defines the term‘company’. “Company means a
company incorporated under this Act or under any previous company law”.
➢ Common Seal - A company being an artificial person is not bestowed with a body of a natural
being. Therefore, it works through the agency of human beings. Common seal is the official
signature of a company, which is affixed by the officers and employees of the company on
its every document. The common seal is a seal used by a corporation as the symbol of its
incorporation.
The Companies (Amendment) Act, 2015 has made the common seal optional by omitting the
According to section 3(1)(c) of the Companies Act, 2013, OPC is a private limited company
with the minimum paid up share capital as may be prescribed and has at least one member.
1. Private Company [Section 2(68)]: “Private company” means a company having a minimum
paid-up share capital as may be prescribed, and which by its articles,—
• restricts the right to transfer its shares;
• except in case of One Person Company, limits the number of its members to two hundred:
Provided that where two or more persons hold one or more shares in a company jointly, they
shall, for the purposes of this clause, be treated as a single member:
Provided further that—
• persons who are in the employment of the company; and
• persons who, having been formerly in the employment of the company, were
members of the company while in that employment and have continued to be
members after the employment ceased,
• shall not be included in the number of members; and
• prohibits any invitation to the public to subscribe for any securities of the company;
Small Company: Small company given under the section 2(85) of the Companies Act, 2013
which means a company, other than a public company—
• paid-up share capital of which does not exceed fifty lakh rupees or such higher amount
as may be prescribed which shall not be more than five crore rupees; and
• turnover of which as per its last profit and loss account does not exceed two crore
rupees or such higher amount as may be prescribed which shall not be more than
twenty crore rupees:
➢ Holding and subsidiary companies: ‘Holding and subsidiary’ companies are relative terms.
A company is a holding company in relation to one or more other companies, means a company
of which such companies are subsidiary companies. [Section 2(46)]
Whereas section 2(87) defines “subsidiary company” in relation to any other company (that is
to say the holding company), means a company in which the holding company—
• controls the composition of the Board of Directors; or
• exercises or controls more than one-half of the total share capital either at its own or
together with one or more of its subsidiary companies:
The composition of a company’s Board of Directors shall be deemed to be controlled by
another company if that other company by exercise of some power exercisable by it at its
discretion can appoint or remove all or a majority of the directors.
❖ Formation of Company:
Section 3 of the Companies Act, 2013 deals with the basic requirement with respect to the
constitution of the company. In the case of a public company, any 7 or more persons can
form a company for any lawful purpose by subscribing their names to memorandum and
complying with the requirements of this Act in respect of registration. In exactly the same
way, 2 or more persons can form a private company and one person where company to be
formed is one person company.
➢ Incorporation of Company: Section 7 of the Companies Act, 2013 provides for the procedure
to be followed for incorporation of a company.
➢ Effect of Registration:
Section 9 of the Companies Act, 2013 provides for the effect of registration of a company.
According to section 9, from the date of incorporation (mentioned in the certificate of
incorporation), the subscribers to the memorandum and all other persons, who may from
time to time become members of the company, shall be a body corporate by the name
contained in the memorandum. Such a registered company shall be capable of exercising all
the functions of an incorporated company under this Act and having perpetual succession
with power to acquire, hold and dispose of property, both movable and immovable, tangible
and intangible, to contract and to sue and be sued, by the said name. From the date of
incorporation mentioned in the certificate, the company becomes a legal person separate
from the incorporators.
➢ Articles of Association - The articles of association of a company are its rules and regulations,
which are framed to manage its internal affairs. Just as the memorandum contains the
fundamental conditions upon which the company is allowed to be incorporated, so also the
articles are the internal regulations of the company.
• Contains regulations: The articles of a company shall contain the regulations for
management of the company.
• Inclusion of matters: The articles shall also contain such matters, as are prescribed under
the rules. However, a company may also include such additional matters in its articles as
may be considered necessary for its management.
• Contain provisions for entrenchment: The articles may contain provisions for
entrenchment (to protect something) to the effect that specified provisions of the articles
may be altered only if conditions or procedures as that are more restrictive than those
applicable in the case of a special resolution, are met or complied with.
• Forms of articles: The articles of a company shall be in respective forms specified in Tables,
F, G, H, I and J in Schedule I as may be applicable to such company.
• Model articles: A company may adopt all or any of the regulations contained in the
model articles applicable to such company.
➢ Management of Company:
Provisions relating to management and administration of company are contained in Section
88 to 122 of the Companies Act.
➢ Maintaining Registers - Section 88(1) of the Companies Act, 2013 seeks to provide that every
company shall keep and maintain the register of members, register of debenture-holders and
➢ Annual Return - The provisions of preparation and filing of annual return of a company are
contained in section 92 of the Companies Act, 2013. The section is particularly important
from the compliance point of view, since this is an annual compliance and essentially
captures all the important events that have taken place in the company during the financial
year. Every company is required to file with the RoC, the annual return as prescribed in
section 92, in Form MGT – 8 as per Rule 11(1) of the Companies (Management &
Administration) Rules, 2014.
The particulars contained in an annual return, to be filed by every company are as follows:
➢ Notice of a meeting - Companies Act, 2013 states that in order to properly call a general
meeting the notice should be sent at least 21 clear days before the meeting, to all the
members, legal representative of any deceased member or the assignee of insolvent
members, the auditors and directors, in writing or electronic mode.
➢ Contents of the Notice - A valid notice must state the day, date, time and place of the
meeting and shall contain a statement of business to be transacted in that meeting. It must
be issued on the authority of the Board of Directors under the name of an authorised official.
Where any special business is to be transacted at the company’s general meeting, then an
‘Explanatory Statement’ should be annexed to the notice calling such general meeting.
Section 101(4) states that any accidental omission to give notice to, or non-receipt of such
notice to any member or other person who is entitled to such notice for any meeting shall not
invalidate the proceedings of the meeting.
➢ Voting in a meeting:
As per the Companies Act, 2013, the voting in a meeting can take place in the following ways:
➢ Motions & Resolution in Meetings - Most matters come before a meeting by way of a motion
recommending that the meeting may express approval or disapproval or take certain action
or order something to be done. A motion is a proposal, and a resolution is the adoption of a
motion duly made and seconded. But every motion need not be followed by a resolution, as
where a motion is made for the adjournment of the meeting. As per the Companies Act,
2013, resolutions are of two types–
➢ A petition to the Tribunal for the winding up of a company shall be presented by—
• the company;
➢ Effect of winding up order - The order for the winding up of a company shall operate in
favour of all the creditors and all contributories of the company as if it had been made out
on the joint petition of creditors and contributories. When a winding up order has been
passed or a provisional liquidator has been appointed, no suit or other legal proceeding shall
be commenced, or if pending at the date of the winding up order, shall be proceeded with,
by or against the company, except with the leave of the Tribunal and subject to such terms
as the Tribunal may impose. However, Nothing in this sub-section shall apply to any
proceeding pending in appeal before the Supreme Court or a High Court.
➢ Overriding Preferential Payments - In the winding up of a company under this Act, the
following debts should be paid in priority to all other debts,
➢ Limited Liability Partnership (LLP) - LLP is a new form of legal business entity with limited
liability. It is an alternative corporate business vehicle that not only gives the benefits of
limited liability at low compliance cost but allows its partners the flexibility of organising their
internal structure as a traditional partnership. The LLP is a separate legal entity and, while
➢ Incorporation of LLP: Under the LLP Act, 2008; the following elements are very essential
to form a LLP in India:
• To complete and submit incorporation document in the form prescribed with the Registrar
electronically;
• To have at least two partners for incorporation of LLP [Individual or body corporate];
• To have registered office in India to which all communications will be made and received;
• To appoint minimum two individuals as designated partners who will be responsible for
number of duties including doing of all acts, matters and things as are required to be done
by the LLP. Atleast one of them should be resident in India.
• A person or nominee of body corporate intending to be appointed as designated partner
of LLP should hold a Designated Partner Identification Number (DPIN) allotted by MCA.
• To execute a partnership agreement between the partners inter se or between the LLP and its
partners. In the absence of any agreement the provisions as set out in First Schedule of LLP
Act, 2008 will be applied.
• LLP Name.
➢ Abuse of Dominant Position - Section 4 of the Competition Act, 2002 expressly prohibits any
enterprise or group from abusing its dominant position. The term 'Dominant Position'
includes a position of strength, enjoyed by an enterprise or group, in relevant market, in
India, which enables it to Operate independently of competition forces prevailing in the
relevant market; or affect its competitors or consumers or the relevant market in its favour.
➢ Merger, Amalgamations and Acquisitions Control - Competition Act, 2002 uses the
word combinations to cover acquisition of control, shares, voting rights and assets, and
mergers and amalgamations. Section 6 of the Competition Act, 2002 prohibits any
person or enterprise from entering into a combination which causes or is likely to cause an
appreciable adverse effect on competition within the relevant market in India and if such a
combination is formed, it shall be void. Any person or enterprise, who or which proposes to
enter into any combination, shall give a notice to the Competition Commission of India,
disclosing details of the proposed combination.
Information Technology Act was enacted on 17th May 2000 primarily to provide legal
recognition for electronic transactions and facilitate e-commerce. India became the 12th
nation in the world to adopt cyber laws by passing the Act. When the Information
Technology Act, 2000 was introduced, it was the first information technology legislation
introduced in India. The IT Act is based on Model law on e-commerce adopted by UNCITRAL
(United Nations Commission on International Trade) of United Nations organization.
➢ Cyber Appellate Tribunal - The Tribunal initially known as the Cyber Regulations Appellate
Tribunal (C.R.A.T.) started functioning from October 2006. The Cyber Regulations Appellate
Tribunal after the amendment of the IT Act in the year 2008 is known as the Cyber Appellate
➢ IT Amendment Act, 2008 - A major amendment was made in 2008. It introduced the Section
66A which penalized sending of "offensive messages". It also introduced the Section 69,
which gave authorities the power of "interception or monitoring or decryption of any
information through any computer resource". It also introduced for child porn, cyber
terrorism and voyeurism.
Supreme Court in 2015 declared Section 66A of Information Technology Act as
unconstitutional and struck it down. This section had been widely misused by police in various
states to arrest innocent persons for posting critical comments about social and political issues
and political leaders on social networking sites.
If a person knowingly or
intentionally conceals, destroys or
alters or intentionally or knowingly
causes another to conceal, destroy
Tampering with or alter any computer source code Imprisonment up to
65 computer source used for a computer, computer three years, or/and with
documents programme, computer system or fine up to ₹200,000
computer network, when the
computer source code is required
to be kept or maintained by law for
the time being in force.
Imprisonment up to
Publishing images If a person publishes or transmits
seven years, or/and
67A containing sexual images containing a sexual explicit
with fine up
acts act or conduct.
to ₹1,000,000
Imprisonment up to five
years, or/and with fine
If a person captures, publishes or
up to ₹1,000,000 on
transmits images of a child in a
Publishing child first conviction.
sexually explicit act or conduct. If a
67B porn or predating Imprisonment up to
person induces a child into a sexual
children online seven years, or/and
act. A child is defined as anyone
with fine up
under 18.
to ₹1,000,000 on
second conviction.
Imprisonment up to
Failure/refusal to The Controller may, by order,
68 direct a Certifying Authority or any three years, or/and with
comply with orders
employee of such Authority to fine up to ₹200,000
➢ Public Information Officers - Public authorities have designated some of its officers as Public
Information Officers. They are responsible to give information to a person who seeks
information under the RTI Act. Public Information Officer is required to supply the ‘material’
in the form as held by the public authority, and is not required to do research on behalf of
the citizen to deduce anything from the material and then supply it to him.
➢ Time period for supplying information - In normal course, information to an applicant shall
be supplied within 30 days from the receipt of application by the public authority. If
information sought concerns the life or liberty of a person, it shall be supplied within 48
hours.
If an applicant is not supplied information within the prescribed time of thirty days or 48
hours, as the case may be, or is not satisfied with the information furnished to him, he may
prefer an appeal to the first appellate authority who is an officer senior in rank to the Public
Information Officer If the first appellate authority fails to pass an order on the appeal within
the prescribed period or if the appellant is not satisfied with the order of the first appellate
authority, he may prefer a second appeal with the Central Information Commission within
ninety days.
➢ Information Exempted from disclosure - The information which, in normal course, is exempt
from disclosure under subsection (1) of Section 8 of the Act, would cease to be exempted if
20 years have lapsed after occurrence of the incident to which the information relates.
➢ Patents - A patent is an exclusive right granted for an invention – a product or process that
provides a new way of doing something, or that offers a new technical solution to a problem.
➢ Evergreening of Patents - Many a time, drug companies to retain the huge profit and
especially after 20 years of patent, try to add trivial molecules or take recourse to various
methods which neither can be termed as an invention nor should lead to secondary patent.
However, pharma companies have been able to do that, which can be termed as
evergreening of patents. Once a drug loses its patent, it becomes generic and the cost falls
down as low as 80%, which is not in the interest of the pharma companies, hence they
employ various means and methods to have the hold over patents. This acts against the
general interest of the public as the drugs become beyond the reach of affordability for
many. Indian Patent Act, 1970 has elaborate provisions to check evergreening.
➢ Copyright - Copyrights covers literary works (such as novels, poems and plays), films, music,
artistic works (e.g., drawings, paintings, photographs and sculptures) and architectural
design. Rights related to copyright include those of performing artists in their performances,
producers of phonograms in their recordings, and broadcasters in their radio and television
programs.
➢ National Intellectual Property Rights (IPR) Policy, 2016 - Union Cabinet has approved the
National Intellectual Property Rights (IPR) Policy on 12th May, 2016 that shall lay the future
roadmap for IPRs in India. The Policy recognises the abundance of creative and innovative
energies that flow in India, and the need to tap into and channelize these energies towards
a better and brighter future for all. It is based on the motto - “Creative India; Innovative
India”.
Example 2: Company A in UP sold goods to a Company C in Gujarat worth Rs. 10,000. The GST
rate is 18% comprising (18% IGST). In this case Company A charges Rs. 1800 IGST.
➢ Input Tax Credit - An important feature of GST is seamless input credit or ITC. Input credit
means at the time of paying tax on output, you can reduce the tax you have already paid on
inputs. Say, you are a manufacturer –
However, one must remember that all the input taxes (Input CGST, Input SGST and Input IGST)
cannot be freely set off with output taxes (output CGST, output SGST and output IGST). The
sequence and manner of utilization can be seen through the following diagram:
➢ Benefits of GST - GST confers different benefits on different sections of society. Let us study
them one by one:
(i) A unified common national market to boost Foreign Investment and “Make in India”
campaign
(iii) Improving the overall investment climate in the country which will benefit the development
of states
(iv) Uniform SGST and IGST rates to reduce the incentive for tax evasion
Trade/Industry:
Citizens: